CHAPTER I

INTRODUCTION
ABOUT THE TOPIC. ABOUT THE COMPANY.

COMPANIES PROFILE
HDFC Standard Life Insurance Company Limited

HDFC Life, one of India's leading private life insurance companies, offers a range of individual and group insurance solutions. It is a joint venture between Housing Development Finance Corporation Limited (HDFC), India's leading housing finance institution and Standard Life plc, the leading provider of financial services in the United Kingdom. HDFC Ltd. holds 72.43% and Standard Life (Mauritius Holding) Ltd. holds 26.00% of equity in the joint venture, while the rest is held by others. HDFC Life's product portfolio comprises solutions, which meet various customer needs such as Protection, Pension, Savings, Investment and Health. Customers have the added advantage of customizing the plans, by adding optional benefits called riders, at a nominal price. The company currently has 29 retail and 5 group products in its portfolio, along with five optional rider benefits catering to the savings, investment, protection and retirement needs of customers. HDFC Life continues to have one of the widest reaches among new insurance companies with more than 500branches servicing customer needs in over 700 cities and towns. The company has a strong base of Financial Consultants.

HDFC Standard Life Insurance Company Limited

HDFC Incorporated in 1977 with a share capital of Rs. 10 crores, HDFC has since emerged as the largest residential mortgage finance institution in the country. The corporation has had a series of share issues raising its capital to Rs. 119 crores. The net worth of the corporation as on March 31, 2000 stood at Rs. 2,096 crore. HDFC operates through 75 locations throughout the country with its Corporate Headquarters in Mumbai, India. HDFC also has an international office in Dubai, U.A.E., with service associates in Kuwait, Oman and Qatar. Standard Life Standard Life is Europe's largest mutual life assurance company. Standard Life, which has been in the life insurance business for the past 175 years, is a modern company surviving quite a few changes since selling its first policy in 1825. The company expanded in the 19th century from its original Edinburgh premises, opening offices in other towns and acquiring other similar businesses. Standard Life currently has assets exceeding over 70 billion under its management and has the distinction of being accorded "AAA" rating consequently for the past six years by Standard & Poor.

The Joint Venture

HDFC Standard Life Insurance Company Limited was one of the first companies to be granted licence by the IRDA to operate in life insurance sector. Each of the JV player is highly rated and been conferred with many awards. HDFC is rated 'AAA' by both CRISIL and ICRA. Similarly, Standard Life is rated 'AAA' both by Moody's and Standard and Poors. These reflect the efficiency with which HDFC and Standard Life manage their asset base of Rs. 15,000 Cr and Rs. 600,000 Cr respectively. HDFC Standard Life Insurance Company Ltd was incorporated on 14th August 2000. HDFC is the majority stakeholder in the insurance JV with 81.4 % stake and Standard Life has a stake of 18.6%. Mr. Deepak Satwalekar is the MD and CEO of the venture.

Our Vision & Values

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Our Vision 'The most successful and admired life insurance company, which means that we are the most trusted company, the easiest to deal with, offer the best value for money, and set the standards in the industry'. 'The most obvious choice for all'.

Our Values Values that we observe while we work:

Integrity Innovation Customer centric People Care "One for all and all for one" Team work Joy and Simplicity

Brief Profile of The Management Team

Mr. Amitabh Chaudhry Managing Director and Chief Executive Officer

Mr. Amitabh Chaudhry is the Managing Director and Chief Executive Officer of HDFC Standard Life.Before joining HDFC Standard Life in January 2010, he was the Managing Director and CEO of Infosys BPO and was also heading an Independent Validation Services unit in Infosys Technologies. Mr. Chaudhry started his career with Bank of America delivering diverse roles ranging from Head of Technology Investment Banking for Asia, Regional Finance Head for Wholesale Banking and Global Markets and Chief Finance Officer of Bank of America (India). He moved to Credit Lyonnais Securities in 2001 in Singapore where he headed their investment banking franchise for South East Asia and structured finance practice for Asia before joining Infosys BPO in 2005.Mr. Chaudhry completed his Engineering in 1985 from Birla Institute of Technology and Science, Pilani and MBA in 1987 from IIM, Ahmedabad. Mr. Paresh Parasnis (Executive Director and Chief Operating Officer) Mr. Paresh Parasnis is the Executive Director and Chief Operating Officer of HDFC Standard Life. A fellow of the Institute of Chartered Accountants of India, he has been associated with the HDFC Group since 1984. During his 16-year tenure at HDFC Limited, he was responsible, for driving and spearheading several key initiatives. As one of the founding members of HDFC Standard life, Mr. Parasnis has been responsible for setting up branches, driving sales and servicing strategy, leading recruitment, contributing to product launches and performance management system, overseeing new business and claims settlement, customer interactions etc.

Ms. Vibha Padalkar (Chief Financial Officer) Ms.Vibha Padalkar is the Chief Financial Officer of HDFC Standard Life. Ms. Padalkar joined HDFC Standard Life in August 2008 after a seven year stint as Executive Vice President-Finance at WNS Global Services, a NYSE listed leading global business process outsourcing company. Vibha's key achievement during her tenure at WNS was to lead a team that successfully completed the Group's IPO on the New York Stock Exchange in a short span of six months. Prior to WNS, Vibha was with Colgate Palmolive India for 7 years, including a short posting to the Group's New York headquarters. Ms.Padalkar became a member of the Institute of Chartered Accountants in England and Wales in 1992, after having completed the last part of her schooling as well as college education in London.

Mr. Ashley Rebello- (Chief Actuary and Appointed Actuary) Mr. Ashley Rebello is the Chief Actuary and Appointed Actuary of HDFC Standard Life.He completed his degree in Mathematics at Imperial College, London, before joining Prudential UK in 1996. During his six years at Prudential he worked in Product Development and Pricing, Valuation and in the Appointed Actuary's team. Subsequently he worked as an actuarial consultant at PricewaterhouseCoopers for five years, working for over 20 life insurance companies on a large variety of assignments in the UK, Netherlands, Switzerland, Greece and the US. He joined Standard Life in April 2008 and immediately moved to HDFC Standard Life. Mr. Rebello is a Fellow of the Institute of Actuaries of India and Fellow of The Institute of Actuaries (UK). 6

Mr. Vikram Mehta- (General Manager, Sales and Marketing) Mr.Vikram Mehta heads the Sales and Marketing function for HDFC Standard Life. Mr. Mehta joined HDFC Standard Life in February 2009. Before joining HDFC Standard Life, he was associated with Citibank for 16 years serving various responsibilities including the Head for Direct Sales - Citibank Credit Cards division in Germany, Regional Director East - Citibank NA, India, and Acquisitions Head - Credit Cards, Central and Eastern Europe cluster. Mr. Mehta started his career with Reckitt and Colman (now Reckitt Benckiser) in 1988, and was associated with the company for 4 years. He has been a part of FMCG and banking industry for over 20 years. Mr. Mehta has completed Chemical Engineering from the Indian Institute of Technology (IIT) Delhi and holds a PGDM from IIM Calcutta.

Awards & Accolades

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Best Companies to Work for in India in 2010

HDFC Standard Life has been adjudged one of the Best Companies to Work for in India in 2010. The company participated in the Great Places to Work study for the first time and ranked first in the insurance category. It ranked 34th on the Top 50 Best Companies to Work for, in India 2010 list. The company was also awarded for its unique employee initiative - Mission in-Genius national quiz. The study has shown that HDFC Standard Life conscientiously develops employee talent programmes to keep engaging and 7

motivating its employees. The company provides some unique platforms such as 'Mission in Genius' national quiz. The management is accessible to all at all times and sincerely seeks feedback from its employees through programmes such as 'Sparsh', the study said.

The Best Companies to Work in India is a study conducted by the Great Place to Work Institute, India in partnership with The Economic Times. The 2010 edition is the seventh study in India, which received overwhelming response from more than 400 companies, making it the largest such study in India. And only 50 companies made it to the Best Companies to Work list!

'YoungStar Super' Voted 'Product of the Year 2010'

HDFC Standard Lifes YoungStar Super has been voted Product of the Year 2010 in the 'Insurance' category by more than 30,000 consumers nationwide across 36 markets. YoungStar Super is an unit linked Children Plan with unique benefits such as bumper additions, double and triple benefits, attractive allocations rates, and seven different funds. The consumer study on product innovation in India was conducted by A C Nielsen, the leading global research firm. Entries were accepted from products that demonstrate innovation in their product function, design, packaging or process or any other specified form. Entries were then filtered by a jury of distinguished industry professionals to ensure that the products meet the innovation criteria before they were passed on to the consumer votes/survey round. Product of the Year is an Internationally Recognised Standard that celebrates and rewards the best innovations in consumer products and services. The Product of the Year is selected through an independent consumer survey across the country in 26 countries for the past 20 years.

PRODUCTS
A. Solutions for Individuals Taking time out from your daily schedule to plan your future is a necessary task. You could do with some help, but who can help you? HDFC Life Insurance is here with Solutions for Individuals, a series of plans that will help you make wise investments, protect your family, secure your childs future and even chalk out a plan for your retirement. So what are you waiting for? Invest in one of HDFC LIFE Solutions for Individuals and pave the way for a worry-free life. Plans Protection Plans: - Protect your family even when youre not around by investing in Hdfc Life Protection Plans. Choose a limited period plan or a lifetime protection plan depending on your needs. Savings & Investment Plans: - Hdfc Savings & Investment Plans help you to set aside some money to achieve specific goals in life, which means that you can enjoy life and provide for your familys daily needs. Retirement Plans: - Invest today in Hdfc Retirement Plans and save money to enjoy life even after retirement. You will never have to depend on another person or make any compromises to maintain your current lifestyle. 9

Child Plans: - Save systematically and secure your childs future needs by investing in Hdfc Child Plans. You can always be there for your child when he or she needs you. B. Solutions for Groups As an employer, you believe in providing the best opportunities for your employees while keeping the interests of the company in mind. How will you strike a balance between the two? HDFC standard Life Insurance offers you a win-win solution with Solutions for Groups. Not only are your employees covered for life from accidents and disablements, you can also efficiently manage their future with gratuity and pension plans. So invest in HDFC STANDARD LIFE Solutions for Groups to give your employees a sense of belonging and feel at peace knowing that you have fulfilled your obligation towards your corporate family. Plans Employers Liability Solutions: - Freedom from forecasting and managing liability for employees Gratuity, Leave Encashment and Pension. Employee Protection Solutions: - Have you always wanted to give your employees total cover from any accidents, disabilities or untimely deaths? Invest in HDFC LIFE Employee Protection Solutions today and show your employees that you care. Employee Voluntary Benefits: - Empower your employees by offering convenient access to most competitive financial services solutions to manage their investment and insurance needs.

THE PLAYER
VARIOUS INSURANCE COMPANIES IN INDIA

LIST OF INDIAN INSURANCE COMPANIES

Indian insurance companies: - Indian insurance companies play a key role in Indias financial sector with Indias population becoming more affluent and globalize, insurance is growing rapidly. This increasing market is creating considerable competition among Indian insurance companies in an industry that 20 years ago was relatively small. Today, India insurance regulatory and development authority (IRDA), has granted registration to 12 private life insurance companies and nine general insurance companies. Counting the existing public sector insurance companies, there are currently 13 Indian insurance companies in the life side and 13 Indian insurance companies operating in general insurance. General Insurance Corporation has been approved as the Indian reinsurer for underwriting only reinsurance business.

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Various life insurance players:

HDFC Standard Life Insurance Company Limited HDFC
Incorporated in 1977 with a share capital of Rs. 10 crores, HDFC has since emerged as the largest residential mortgage finance institution in the country. The corporation has had a series of share issues raising its capital to Rs. 119 crores. The net worth of the corporation as on March 31, 2000 stood at Rs. 2,096 crore. HDFC operates through 75 locations throughout the country with its Corporate Headquarters in Mumbai, India. HDFC also has an international office in Dubai, U.A.E., with service associates in Kuwait, Oman and Qatar.

Standard Life
Standard Life is Europe's largest mutual life assurance company. Standard Life, which has been in the life insurance business for the past 175 years, is a modern company surviving quite a few changes since selling its first policy in 1825. The company expanded in the 19th century from its original Edinburgh premises, opening offices in other towns and acquiring other similar businesses. Standard Life currently has assets exceeding over 70 billion under its management and has the distinction of being accorded "AAA" rating consequently for the past six years by Standard & Poor.

The Joint Venture HDFC Standard Life Insurance Company Limited was one of the first companies to be granted licence by the IRDA to operate in life insurance sector. Each of the JV player is highly rated and been conferred with many awards. HDFC is rated 'AAA' by both CRISIL and ICRA. Similarly, Standard Life is rated 'AAA' both by Moody's and Standard and Poors. These reflect the efficiency with which HDFC and Standard Life manage their asset base of Rs. 15,000 Cr and Rs. 600,000 Cr respectively.HDFC Standard Life Insurance Company Ltd was incorporated on 14th August 2000. HDFC is the majority stakeholder in the insurance JV with 81.4 % stake and Standard Life has a stake of 18.6%. Mr. Deepak Satwalekar is the MD and CEO of the venture.

Reliance life insurance

Few men in history have made as dramatic a contribution to their countrys economic fortunes as did the founder of Reliance, Shri. Dhirubhai Heranand Ambani. Fewer still have left behind a legacy that is more enduring and timeless. As with all great pioneers, there is more than one unique way of 11

describing the true genius of Dhirubhai: The corporate visionary, the unmatched strategist, the proud patriot, the leader of men, the architect of Indias capital markets, the champion of shareholder interest. But the role Dhirubhai cherished most was perhaps that of Indias greatest wealth creator. In one lifetime, he built, starting from the proverbial scratch, Indias largest private sector enterprise. When Dhirubhai embarked on his first business venture, he had a seed capital of barely US$ 300 (around Rs 14,000). Over the next three and a half decades, he converted this fledgling enterprise into a Rs 60,000 crore colossusan achievement which earned Reliance a place on the global Fortune 500 list, the first ever Indian private company to do so. Dhirubhai is widely regarded as the father of Indias capital markets. In 1977, when Reliance Textile Industries Limited first went public, the Indian stock market was a place patronised by a small club of elite investors which dabbled in a handful of stocks. Undaunted, Dhirubhai managed to convince a large number of first-time retail investors to participate in the unfolding Reliance story and put their hard-earned money in the Reliance Textile IPO, promising them, in exchange for their trust, substantial return on their investments. It was to be the start of one of great stories of mutual respect and reciprocal gain in the Indian markets. Under Dhirubhais extraordinary vision and leadership, Reliance scripted one of the greatest growth stories in corporate history anywhere in the world, and went on to become Indias largest private sector enterprise. Through out this amazing journey, Dhirubhai always kept the interests of the ordinary shareholder uppermost in mind, in the process making millionaires out of many of the initial investors in the Reliance stock, and creating one of the worlds largest shareholder families. About Reliance Life Insurance Reliance Life Insurance offers you products that fulfil your savings and protection needs. Our aim is to emerge as a transactional Life Insurer of global scale and standard. Reliance Life Insurance is an associate company of Reliance Capital Ltd., a part of Reliance - Anil Dhirubhai Ambani Group. Reliance Capital is one of Indias leading private sector financial services companies, and ranks among the top 3 private sector financial services and banking companies, in terms of net worth. Reliance Capital has interests in asset management and mutual funds, stock broking, life and general insurance, proprietary investments, private equity and other activities in financial services.

Max India Limited

Starting early 1999, Max has refocused itself into building a company based on the knowledge platform that India represents. Today, Max is building businesses in the emerging knowledge-based areas of Healthcare, Financial Services and Information Technology. It has grown independently on its own and by joining hands in partnerships with major international companies where specific business opportunities are best addressed through joint ventures. Max India has a significant presence in the most vital & fast growing sectors of the Indian Economy, Telecommunication services, Electronic components distribution, Speciality Plastic Films and Bulk Pharmaceuticals. These diversified businesses are organised as Max India's 100% owned Business Units (BU) and equity sharing Joint Ventures (JV). Each of the BUs & JVs, fully empowered to lead their operations, have grown and obtained leadership position in their respective industries by providing high quality products and services, working closely with their customers. New York Life International Inc. In 1998 New York Life International Inc., a Fortune 100 company, had total revenues amounting to almost US $ 20 billion, and was rated the number one provider of new life insurance policies in the 12

United States. In the same year, New York Life was also the leader in insurance sales to the growing Indian community in the Unites States. The Joint Venture Max New York Life is a partnership between Max India Limited, one of India's leading multibusiness corporations and New York Life, a Fortune 100 company. The paid-up capital of the Joint Venture is Rs. 250 crores and the CEO and Managing Director of Max New York Life Insurance Company is Mr. Anuroop 'Tony' Singh.

Bajaj Allianz Life Insurance Company Limited Bajaj Auto Ltd.

Bajaj Auto Ltd the flagship company of Bajaj Group was incorporated in 1945 as Bachraj Trading Corporation. Initially it started by assembling two and three wheelers in collaboration with Piaggio of Italy. After the expiry of the agreement in 1971 the two and three wheelers acquired the brand name of Bajaj. The strength of the company lies in its strong brand image and ability to offer value for money products leveraging on its large-scale operations. Bajaj is one of India's largest two and three - wheeler manufacturer and the fourth largest manufacturer of two-wheeler in the world, with an annual turnover of Rs. 42.16 billion.

Allianz AG
Allianz group was founded in 1890 and is one of the world's leading insurance companies with over 100 years' experience in insurance and related services. It is also the largest insurer in Europe. Allianz group has multi-local structure and presence in over 70 countries. The key business areas of Allianz group include General Insurance (property, engineering, marine, motor, casualty and miscellaneous),

Reinsurance, Risk Management, Life & health insurance, Asset Management and Pension Funds Management. Corn hill Insurance in the United Kingdom, Fireman's Fund in the United States of America, AGF in France, RAS s.p.a in Italy, MMI in Australia are some companies under Allianz group. Rated 'AAA' by S&P it has assets over 670 billion DM (Rs. 17,160 billion) under its management with employee strength of over 1,05,700. The Joint Venture Allianz Bajaj Life Insurance Co. Ltd. Company is a joint venture between Allianz AG and Bajaj Auto Limited. Characterized by global presence with a local focus and driven by customer orientation to establish high earnings potential and financial strength, Allianz Bajaj Life Insurance Co. Ltd. was incorporated on 12th March 2001. The company received the Insurance Regulatory and Development Authority (IRDA) Certificate of Registration (R3) No 116 on 3rd August 2001 to conduct Life Insurance business in India.

ICICI Prudential Life Insurance Company

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ICICI
ICICI Ltd., was established in 1955 by the World Bank, the Government of India and the Indian Industry, to promote industrial development of India by providing project and corporate finance to Indian industry. Since inception, ICICI has grown from a development bank to a financial conglomerate and has become one of the largest public financial institutions in India. ICICI has thus far financed all the major sectors of the economy, covering 6,848 companies and 16,851 projects. As of March 31, 2000, ICICI had disbursed a total of Rs. 1,13,070 crores, since inception.

Prudential plc.
Prudential plc. was founded in 1848. Since then it has grown to become one of the largest providers of a wide range of savings products for the individual including life insurance, pensions, annuities, unit trusts and personal banking. It has a presence in over 15 countries, and caters to the financial needs of over 10 million customers. It manages assets of over US$ 259 billion (Rupees 11,39,600 crores approx.) as of December 31, 1999. Prudential is the largest life insurance company in the United Kingdom (Source: S&P's UK Life Financial Digest, 1998). Asia has always been an important region for Prudential and it has had a presence in Asia for over 75 years. In fact Prudential's first overseas operation was in India, way back in 1923 to establish Life and General Branch agencies. The Joint Venture ICICI Prudential Life Insurance Company Limited was incorporated on July 20, 2000. The authorized capital of the company is Rs.2300 Million. The paid up capital is Rs. 1900 Million. The Company is a joint venture of ICICI (74%) and prudential plc UK (26%). The Company was granted Certificate of Registration for carrying out Life Insurance business, by the Insurance Regulatory and Development Authority on November 24, 2000. It commenced commercial operations on December 19, 2000, becoming one of the first few private sector players to enter the liberalized arena.

ING Vysya Life Insurance Company Pvt Limited Vysya Bank

Vysya Bank is one of the most aggressive of the older-generation private-sector banks. With the investment from a foreign partner, Bank Brussels Lamberts, in the equity of the bank, it is expected to gear up to effectively fight competition in the new liberalised era. Vysya Bank is a big player given its significant branch penetration. It has a very high degree of retail focus with good customer service. The Vysya Bank is one of the largest private banks in India with around 2 million customers and 480 retail outlets.

ING
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ING Group, with an asset base of over Rs. 28,42,000 crore is a global financial institution of Dutch origin, which is active in the field of banking, insurance and asset management in more than 60 countries, with nearly 90,000 employees. ING comprises a broad spectrum of prominent companies working close to the customer, many of them operating under their own brand names.

ING Insurance ING Insurance is the worlds second largest life insurance company as per latest Fortune rankings with a client base of over 50 million since it acquired ReliaStar and Aetna Financial Services earlier this year. It is the third largest financial services company in Europe and the tenth largest financial services company in the World. The Joint Venture ING has joined hands with Vysya Bank, one of India's leading private sector banks, to form ING Vysya Life Insurance, which is expected to be the first Bank assurance venture in the country. Together they have roped in GMR group, which has wide ranging interests in fields such as power generation, infrastructure, manufacturing, software and banking. As per the JV agreement, Vysya Bank would hold 49 per cent stake, ING 26 percent, and the GMR Group would hold 25 per cent. The paid up capital of the joint venture is Rs. 110 crore. The company which is headquartered at Bangalore has commenced its operations at Mumbai and Delhi. Mr. Yvo Metzelaar is the Chief Executive Officer cum Managing Director of ING Vysya Life Insurance.

Life Insurance Corporation of India

LIC has been established by an act of the Parliament and started functioning from 1-9-1956. It is an autonomous body authorised to run the life insurance business in India with its Head Office at Mumbai. It has 7 zonal offices, over 100 Divisional offices and 2048 branches in India, with around 6.51 lakh agents. The Corporation also has offices in London, Fiji and Mauritius. The chairman of LIC is Mr.

S B Mathur

MetLife India Insurance Company Ltd. Metropolitan Life

MetLife India proudly carries a 135 year old legacy of helping build financial freedom for everyone. Metropolitan Life Insurance Company ("MetLife"), a subsidiary of MetLife, Inc. (NYSE: MET), is a leading provider of insurance and other financial services to individual and institutional customers. The MetLife Companies serve approximately 12 million individuals in the U.S. and companies and institutions with 33 million employees and members, including 88 of the Fortune 100 companies. MetLife also has, through its subsidiaries and affiliates, international insurance operations in 12 15

countries. For more information about MetLife, please visit the company's web site at www.metlife.com.

The Joint Venture MetLife India Insurance Company Private Limited ("MetLife India") is the Indian affiliate of Metropolitan Life Insurance Company ("MetLife"), the number one life insurer in the U.S, based on approximately US$ 2.4 trillion in life insurance in-force as of December 31, 2002. MetLife India was incorporated in April 2001 as a joint venture between MetLife International Holdings, Inc., The Jammu and Kashmir Bank, M. Pallonji and Co. Private Limited and other private investors. MetLife India benefits from its affiliated company's 135-year old expertise and track record of establishing successful operations in emerging markets, in addition to the unique strengths of its Indian promoters. MetLife India offers a range of innovative products and aims to build financial freedom for everyone. MetLife India is headquartered in Bangalore and has offices in 9 cities and an additional 1,000 outreach points through its distribution channel partners. For more information about MetLife India, please visit the company's web site at www.metlifeindia.com.

OM Kotak Mahindra Life Insurance Kotak Mahindra Bank Ltd (KMBL)

Kotak Mahindra Bank Limited (KMBL) is the holding company and the flagship of the Kotak Mahindra Group. It was actually incorporated as Kotak Capital Management Finance Limited on November 2, 1985 and obtained its Certificate of Commencement of Business on February 11, 1986. With the liberalisation of the Indian economy and the opening up of the financial markets, the Company diversified and started offering a wider spectrum of financial services.

Old Mutual plc.

Old Mutual plc. is a leading financial services provider in the world, providing a broad range of financial services in the area of insurance, asset management and banking. It is a leading life insurer in South Africa, with more than 30% market share. The partnership with Old Mutual plc provides the Kotak Mahindra group with an international perspective and expertise in the life insurance business.

The Joint Venture The joint venture OM Kotak Mahindra Life Insurance started off with an initial net worth of Rs. 150 crore, with 74:26 stake between KMBL and OM. The Life Insurance business offers KMBL with an opportunity to leverage its core strengths of Wealth Management and Retail Distribution.

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Tata AIG Life Insurance Company Limited TATA Group

Tata Enterprises with 82 companies, spread over seven sectors and with an annual turnover exceeding US $ 8.8 billion, employs more than 262,000 people. Tata Group has shown over years that it is a value driven company and has pioneering contributions in various fields including insurance, aviation, iron and steel. Tata companies have forged a number of global alliances with eminent international partners in several fields. In terms of capital market performance as many as 40 listed Tata companies account for nearly 5% of the total market capitalization of all listed companies. The Group has had a long association with India's insurance sector having been the largest insurance company in India prior to the nationalisation of insurance. TATA Group in Insurance The Late Sir Dorab Tata was the founder Chairman of New India Assurance Co. Ltd., a group company incorporated way back in 1919. Government of India took over the management of this company as a part of nationalization of general insurance companies in 1972. Not deterred by the move, Tata group have ventured into risk management services having tied up with AIG group, back in 1977, with the incorporation of Tata AIG Risk Management Services Pvt. Ltd.

AIG
American International Group, Inc is the leading U.S. based international insurance and financial services organization and the largest underwriter of commercial and industrial insurance in the United States. Its member companies write a wide range of commercial and personal insurance products through a variety of distribution channels in over 130 countries and jurisdictions throughout the world. AIG's Life Insurance operations comprise of the most extensive worldwide network of any life insurer. AIG's global businesses also include financial services and asset management, including aircraft leasing, financial products, trading and market making, consumer finance, institutional, retail and direct investment fund asset management, real estate investment management, and retirement savings products. The Joint Venture Tata AIG Life Insurance Co. Ltd. is capitalised at Rs. 185 crores of which 74 per cent has been brought in by Tata Sons and the American partner brings in the balance 26 per cent. Mr. George O omen has been named managing director of Tata AIG Life. Tata-AIG plans to provide broad array of life insurance plans to cover to both individuals and groups.

HISTORY OF INSURANCE SECTOR

The insurance sector in India has come a full circle from being an open competitive market to nationalization and back to a liberalized market again. Tracing the developments in the Indian insurance sector reveals the 360-degree turn witnessed over a period of almost 190 years. The 17

business of life insurance in India in its existing form started in India in the year 1818 with the establishment of the oriental life insurance company in Calcutta. SOME OF THE IMPORTANT MILESTONES IN THE LIFE INSURANCE BUSINESS IN INDIA ARE:

1912 - The Indian life assurance companies act enacted as the first statute to regulate the life insurance business. 1928 - The Indian insurance companies act enacted to enable the government to collect statistical information about both life and non-life insurance businesses. 1938 - Earlier legislation consolidated and amended to by the insurance act with the objective of protecting the interests of the insuring public. 1956 - 245 Indian and foreign insurers and provident societies taken over by the central government and nationalized. LIC formed by an act of parliament, viz. LIC act, 1956, with a capital contribution of Rs. 5 crore from the government of india.

The general insurance business in India, on the other hand, can trace its roots to the triton insurance company ltd., the first general insurance company established in the year 1850 in Calcutta by the British.

INSURANCE
Insurance is a thing of utmost importance in anyone's life. It is very important that everybody should know clearly about insurance. People often ask about the basic needs and benefits of insurance policies. Insurance is actually a part of risk management business and this policy of insurance save people from unexpected disasters in their and their family life as well. The main function of insurance companies is to protect their clients against all kinds of sudden accidents that may take place in their lives. Normally all the companies follow the principle of taking premium from people. The main purpose of taking premiums from people is because of the service they will provide them in upcoming future. Generally there is a rule to give this premium in cash or check to the company in an annual or monthly interval. The company that provides the facilities is called the insurer as far as the term of economics is concerned. Companies all around the globe always make arrangements so that they can provide people with different types of insurance. Reliability is always checked out by any company whenever a person claims for the insurance money. Health insurance is one of the biggest kinds of insurance that gives major business to the companies. On the other hand there are also insurances like which is mainly done when a loss of life occurs in any family, be it natural or accidental? Automobile insurance is also another insurance scheme that is related to cars. Another thing is of much importance. The losses for which the company is supposed to pay the money should always be measurable. Thousands of agents work as communicative mediums in between the companies and individuals. The variety of insurances that are available differs from one country to another. Apart from health, all the properties that a person owns are also precious to him or her. That is why everything must be 18

insured in ones life. In all the developed countries around the world there are all arrangements for different types of insurance. Insurance is a positive step to make ones life better and peaceful.

TYPES OF INSURANCE
Insurance, speaking precisely, is a deal between an individual and a company. Under this deal, the company is bound to take the responsibility of paying money to the client if any sudden disaster takes place in his or her life. There are different types of insurance that are available throughout the whole world. All the sections of life cannot be covered by a single insurance. That is why need for all types of insurance has become prominent. Life insurance and health insurance are two of the major insurance schemes that are provided by the companies in every country. Life insurance is an insurance scheme that is important in the case of any loss of life. The individual who had enlisted his name as the client of the company is the insured person. After his or her death the family gets the claimed money. To make this scheme a successful one the insured person needs to give premium to the company at an interval, monthly or annually. Health insurance is another important kind of insurance for which the company pays money to the individual's medical treatment. There are also different kinds of insurance like automobile insurance, disability insurance, boiler insurance, home insurance, travel insurance, term insurance, renters insurance, property insurance, pet insurance, credit insurance, crop insurance and many others as well. Automobile insurance is mainly related to the cars owned by individuals as well as companies. Disability insurance help handicapped persons for their medical treatments. All the types of insurance are not available in all countries around the whole world. There are all kinds of insurance in America and also in some of the developed European countries. In the third world countries like India life insurance takes the most vital position that involves all the other activities.

Life Insurance Your family counts on you every day for financial support: food, shelter, transportation, education, and much more. Insurance provides you with that unique sense of security that no other form of investment provides. It gives you a sense of financial support especially during that time of crisis irrespective of the fluctuations in the stock market. Insurance provides for your career goals right from your childhood years. Life insurance is all about making sure your family has adequate financial resources to make those plans and dreams come true. It provides financial protection to help your family or business to manage after your death.

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Few of the Life insurance policies are

Whole life policies - Cover the insured for life. The insured does not receive money while he is alive; the nominee receives the sum assured plus bonus upon death of the insured. Endowment policies - Cover the insured for a specific period. The insured receives money on survival of the term and is not covered thereafter. Money back policies - The nominee receives money immediately on death of the insured. On survival the insured receives money at regular intervals during the term. These policies cost more than endowment with profit policies. Annuities / Children's policies - The nominee receives a guaranteed amount of money at a predetermined time and not immediately on death of the insured. On survival the insured receives money at the same pre-determined time. These policies are best suited for planning children's future education and marriage costs. Pension schemes: - are policies that provide benefits to the insured only upon retirement. If the insured dies during the term of the policy, his nominee would receive the benefits either as a lump sum or as a pension every month. Since a single policy cannot meet all the insurance objectives, one should have a portfolio of policies covering all the needs

INSURANCE LAW REGULATIONS IN INDIA

Insurance law regulations in India manage all the matters related to various insurance companies in the country. The concept of insurance in India dates back to the ancient period. The idea of getting anything insured gained its momentum from the overseas traders who used to practice marine insurance in somewhat crude form. Social insurance was the first of its kind which took shape in India. Since its introduction, the history of insurance in India has undergone many phases. Earlier, the insurance companies in India were privatized. 20

ENTRY OF PRIVATE COMPANIES: A LANDMARK DECISION In the later years, insurance companies were nationalized with the help of insurance laws. In the most recent move in this regard, the insurance law regulations in India permitted the entry of private companies and foreign investment in the sector. This remarkable decision gave the industry a breath of fresh air. Much of the development and growth of the insurance sector in India owes to the decision of the government to nationalize the insurance business in India and to allow private and foreign insurance companies to establish their business in the country. REGULATORY AUTHORITIES: There are 4 regulatory authorities which oversee different functioning of the insurance companies in India and provide guidelines to them. These include: Insurance regulatory and development authority (IRDA). Tariff advisory committee. Ombudsmen. Insurance association of india.

A. INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY (IRDA) Insurance regulatory and development authority (IRDA) is a very powerful body which oversees important aspects of the functioning of the insurance companies in India. It was set up by the government to safeguard the interest of the insurance policy holders of the country. Some of the important powers, duties and functions of insurance regulatory and development authority (IRDA) include: To regulate, ensure and promote the orderly growth of the insurance business. To prescribe regulations on the investment of funds by insurance companies. To regulate the maintenance of the margin of solvency. To adjudicate the disputes between insurers and intermediaries.

B. TARIFF ADVISORY COMMITTEE The prime duty of tariff advisory committee is to regulate and control the rates, benefits, terms and conditions offered by the insurance companies working in India. C. INSURANCE ASSOCIATION OF INDIA: All the insurance companies functional in India are members of the insurance association of India. It has 2 councils under its patronage. These are known as: Life Insurance Council. General Insurance Council.

D. OMBUDSMEN Ombudsmen play important role in regulating and ensuring smooth functions of the insurance companies. They are appointed to address all complaints relating to settlements of claims. Anyone having a grievance against insurance company can approach ombudsmen for redressal. 21

INSURANCE, THE FUTURE BOOM SECTOR OF INDIA

The reforms in the insurance sector leading finally to the opening of the insurance sector for private participation have brought in its wake major changes not only in the design of the products available in the market but also the manner in which they are marketed. We have today a host of products coupled with a large number of intermediaries who market them. The post-liberalized insurance industry panorama in India is witnessing dramatic changes in terms of a slew of latest products and services, new channels of distribution, greater use of it as a service facilitator etc. there is also the phenomenon of noticeable shifts in consumer preferences impacting the product mix being offered by insurers. The market structure dominated by a few stabilized public sector players and the 'new' players in the market (some of whom claim their lineage from established international insurance behemoths) is in a state of flux- in terms of figure out market shares but is full of potential. Added to these are the rising trends of convergence of financial services, especially in the areas like wealth management and evolution of newer risk management tools, particularly in the context of reinsurance management. Greater attention is also being bestowed on the areas like agricultural insurance and risk coverage of export-import trade. then there is impact of visible socio-economic changes like greater urbanization, greater job mobility, growth of the services industry, weakening of traditional family structure, impact of globalization etc. all in all, interesting things are happening in the indian insurance scene. Insurance undergone rapid and massive changes in all aspects of their business: product and services, sectoral structure, market segmentation, competitive environment. It is believed that the information sharing has not taken its expected shape in the insurance industry for the purposes of practices, research and education. However, data is one of the most needed ingredients in the insurance business development as well as for research and consultancy. There have been regular efforts by IRDA for collection and sharing of the data and other information of public interest. The industry is facing problems in terms of data review as parliament need to register this beforehand. We believe that progress of the industry should not be constrained by any extraneous conditions in the interest of research and development in the area. Manpower India today released the manpower employment outlook survey for the first quarter of 2006 revealing sustained positive hiring intentions of employers in India. India continues to lead all 23 countries surveyed this quarter, with a positive overall net employment outlook of +27%. Even though this figure represents a decrease of 13 percentage points from the fourth quarter of 2005, the employment outlook remains extremely healthy. for the first time since the survey was launched in india, the finance, insurance and retail industry sector emerged as the most optimistic sector for a quarter with a net employment outlook of +32%, surpassing the services sector. Privatization of insurance sector has allowed insurance companies to work in the market by depositing 100 crore rupees in the reserve of government. This has encouraged many overseas insurance companies, having a required amount in their reserve, to open their branch in our country. Introduction of the sector has changed the employment pattern, but people must know how to make profit from it. To be in the global market and have advantage of it, capital and skill as per the demand and knowledge of market is the requirement. it is necessary that institutions, which form a part of this financial system, have internal management, governance and accountability structures, which measure up to the highest standards. 22

IMPACT OF GLOBALISATION
While nationalized insurance companies have done a commendable job in extending the volume of the business, opening up insurance sector to private players was a necessity in the context of globalization of financial sector. If traditional infrastructural and semi-public goods industries such as banking, airlines, telecom, power etc., have significant private sector presence, continuing a state of monopoly in provision of insurance was indefensible and therefore, the globalization of insurance has been done as discussed earlier. Its impact has to be seen in the form of creating various opportunities and challenges. The introduction of private players in the industry has added colours to the dull industry. The initiatives taken by the private players are very competitive and have given immense competition to the on time monopoly of the market lic. Since the advent of the private players in the market the industry has seen new and innovative steps taken by the players in the sector. The new players have improved the service quality of the insurance. As a result lic down the years have seen the declining in its career. The market share was distributed among the private players. Though lic still holds 75% of the insurance sectors the upcoming nature of these private players are enough to give more competition to lic in the near future. LIC market share has decreased from 95% (2000-04) to 81% (2004-08).

23

24

REVIEW OF LITERATURE

REVIEW OF LITERATURE

Loren W. Tauer - 1984

General stochastic dominance is used to analyze the use of life insurance versus installment payments to fund the purchase of a decedent's business interest from off-farm heirs. Generally, a risk preferred prefers an installment purchase. The percentage of insurance funding preferred increases as aversion to risk increases. Higher income tax rates lower discount rates, and lower premium costs move the preference for greater percentages of life insurance to lower levels of risk aversion. The funding decision clearly depends upon the characteristics of the individuals involved in the business. Nevertheless, partial funding with life insurance appears optimal in many cases.

JOANNE YATES - 1999

This paper uses Anthony Guldens' structuration theory as a theoretical lens for examining the early adoption and use of computers by life insurance firms in the 1950s. The theoretical lens helps us see 25

how pre-computer punched-card tabulating technology and patterns of technology use in insurance operations structured or shaped the choice and use of computers by insurance firms in the early computer era, even in the presence of new technology advocates arguing for new models of technology and its use. This conservative influence of existing patterns is often underestimated, especially in the case of technologies popularly seen as new and innovative. While structuration leads us to expect reinforcement of existing structures or models most of the time, it also helps us to interpret the exceptions to these patterns that opened the way to new and innovative uses of computer technology in insurance.

Vicente Cuat - 2006

This article examines how in a context of limited enforceability of contracts suppliers may have a comparative advantage over banks in lending to customers because they are able to stop the supply of intermediate goods. Suppliers may act also as liquidity providers, insuring against liquidity shocks that could endanger the survival of their customer relationships. The relatively high implicit interest rates of trade credit are the result of insurance and default premiums that are amplified whenever suppliers face a relatively high cost of funds. I explore these effects empirically for a panel of UK firms. (JEL: G30, M130, D920)

BD Smith - 1999
Nonprofit, mutually owned insurance and banking organizations have significant market shares in the insurance and banking industries. A first step in a systematic study of these financial mutuals is to examine the reasons for their formation. Doing so provides empirical support for the view that these mutuals arose as an efficient means of addressing contracting challenges caused by aggregate uncertainties and moral hazard. A formal model with this property is presented. We argue that information asymmetries do more to explain the kinds of contracts offered by financial mutuals than do agency problems between owners, managers, and customers.

Chris Forman - 2009

In this paper, we examine whether frictions created by differences in firm boundaries affect the speed with which firms adopt new Information Technology. Using a rich dataset on organizational characteristics and Internet investment by over 100 firms in the insurance industry, we show that vertical integration in distribution has a significant impact on the speed with which insurers adopt consumer Internet applications that complement the existing distribution relationship. Vertical integration, however, has no effect on the adoption of tools that enable electronic communication between an insurer and its sales force. Furthermore, vertical integration has no affect on the adoption of Internet technologies, such as basic access, that are not used in distribution.

Anders Wikman - 2011

Sickness absence in Sweden is high, particularly in young women and the reasons are unclear. Many Swedish women combine parenthood and work and are facing demands that may contribute to impaired health and well-being. We compared mothers and women without children under different conditions, assuming increased sickness absence in mothers, due to time-based stress and psychological strain. Methods: All women born in 196079 (1.2 million) were followed from 1993 to 2003. Information on children in the home for each year was related to medically certified sickness absence with insurance benefits the year after. We used age and time-stratified proportional hazard regression models accounting for the individual's changes on study variables over time. Data were retrieved from national administrative registers. Results: Sickness absence was higher in 26

mothers than in women without children, the relative risks decreased by age, with no effect after the age of 35 years. An effect appeared in lonely women irrespective of age, while in cohabiting women only for the ages 2025 years. Mothers showed increased sickness absence in all subgroups of country of birth, education, income, sector of employment and place of residence. The relation between number of children and sickness absence was nonlinear, with the highest relative risks for mothers of one child. The upward trend of sickness absence at the end of 1990s was steeper for mothers compared to women without children. Conclusion: Despite the well-developed social security system and child care services in Sweden, parenthood predicts increased sickness absence, particularly in young and in lone women.

Claudio A. Agostini - 2011

In September 2005, the Chilean Competition Authority filed a lawsuit against five private health insurance providers for violation of antitrust laws. They were accused of colluding to reduce the coverage levels of their plans. Between March 2002 and March 2003, they reduced the coverage offered from 100 percent for hospitalization and 80 percent for ambulatory care to 90 percent and 70 percent, respectively. These facts were undisputed, but, logically, the mere observation of parallel conduct is not enough to infer collusion. In this article, we analyze the merits of the accusation and find strong support for it. We first present evidence on the definition of the relevant market (that excludes the public insurer) and the presence of entry barriers. We then present a simple model of imperfect competition that gives some testable predictions to separate the hypotheses that insurers colluded to reduce coverage and the oneargued during the trial by the insurersthat the coverage reduction was a competitive reaction to a cost shock. We then present econometric evidence consistent only with the hypothesis of collusion: The accused insurers reduced sales efforts and marketing expenses relative to the non-accused insurers, the monthly transfer rates of insures among accused insurers decreased during the period of the alleged agreement relative to the rate of the nonaccused insurers, and profits of both accused and non-accused insurers increased after the coverage reduction.

Barbara Starfield 2009.

In a meta-analysis of eight studies on overall mortality in women with breast cancer, Kevin Gorey 1 makes a powerful case that better equity in survival in Canada than in the USA is a direct result of universal financial coverage for health services in the former country. The combined studies made it possible to examine age-adjusted survival rates in different age groups (under and over the age of 65 years), with different geographic units of analysis, in different types of place of residence, and with different specifications for socio-economic characteristics. All in all, 78 different comparisons were made in seven domains [two socio-economic status (SES) group comparisons in each of the two countries and one comparison in each of three socio-economic strata of the two countries]. The main findings were as follows. 1. 2. 3. 4. SES is not strongly related to overall survival in almost all of the Canadian contexts. SES is strongly and consistently related to poorer survival in all US contexts. There is an SES gradient (dose response) in the US contexts. Survival is shorter in women of lower SES in the USA, suggesting either later diagnosis (more serious disease) or less adequate treatment. 5. The cross-country difference in survival is present in low-income areas, but not in high- or middle-income areas. 6. The Canadian advantage in survival

Richard V. Ericson 2006

27

Interview and ethnographic data are used to show how deceptive sales practices are rife and institutionalized in the life insurance industry. The data are analyzed using the concept of moral risk: the paradoxical tendency of the structure and culture of the insurance institution to facilitate and encourage risky behavior on behalf of the various players in the insurance relationship, in this case behavior by insurance companies and their agents that puts consumers at risk through deceptive selling. We give empirical evidence of five key sources of moral risk that are part of the enduring structure and culture of life insurance sales. Although moral risk has been pervasive in life insurance sales since the birth of the industry, it articulates with key contemporary social tendencies: the responsibilization of the individual consumer, the erosion of the social safety net, fragmentation, individualism and the attenuation of family ties, the growth of a flexible lab our force, and the downloading of regulatory responsibility from the state. Deceptive sales practices corrode trust and promote yet more individualism, erasing the potential of insurance as a mechanism of social solidarity.

Mark Sommers 2008

The US Court of Appeals for the Ninth Circuit reversed the dismissal of a breach of insurance policy claim, holding that a Field of Entertainment Endorsement clause excluding liability for entertainment-related injury did not limit the obligation of the insurance company to defend an insured reunited rock band where liability of the band could potentially arise from claims of trade mark infringement because of allegedly infringing promotional merchandise and certain alleged reputational injuries to an ex-band member.

CHAPTER III
28

RESEARCH METHODOLOGY

OBJECTIVE OF THE STUDY

THE FOLLOWING OBJECTIVES HAVE BEEN FORMED SUCH AS: To discuss the challenges that the life insurance sector is facing in India. To focus the opportunities that the life insurance sector in India is having. To assess the growth of private life insurance sector in India. To discuss on the cost (Premium Amount) and on the rate of return (ROR) on insurance policies.

RESEARCH METHODOLOGY
A. DEFINING THE RESEARCH PROBLEM AND RESEARCH OBJECTIVES
The definition of the problem includes the study of Life insurance sector in India with special reference to HDFC Standard Life Insurance Company Limited.

B. DEVELOPING THE RESEARCH PLAN.

29

It has the following types: 1. DATA SOURCES Two types of data were taken into consideration i.e., primary data and secondary data. But major emphasis was given on gathering primary data. The secondary data was used only to supplement the primary and make things clear. a) Primary Data: the collection of data for this source includes personal interviews of people by the filling of questionnaire. b) Secondary Data: In this study the secondary data is collected from the following.

Sources:
Companys website. Reports of company. Discussion with public and official person. Books on marketing.

2. SAMPLING PLAN
An integral component of a research design is the sampling plan. Specifically the sampling plan address three questions: whom to survey, how many to survey, and how to select them. The following procedure is give below accordingly.

Population: The population interviewed in the research is General public, employees of the HDFC Life, in the MANDI city.

Sample Size:
The sample size covered during the research is of 50.

Sample Element:
The sample element of the research is public & other officials.

Sample Duration:
The sample duration between June 2011 and Aug 2011.

Sample Extent:
30

The sampling procedure followed is judgemental sampling.

Research Instrument:
In this study the research instrument is Questionnaire. It consists of a set of 12 questions presented to respondents. The questionnaire is structured with combinations of various close and open ended questions. Close ended questions already have the possible answers and the open-ended questions allow the respondents to answer in their own words.

31

CHAPTER IV

DATA INTERPRETATION AND ANALYSIS

Data interpretation and analysis
Data interpretation and analysis is basically deals with the data which is collected for the research purpose is here evaluated and then the data which is relevant is to be used for the research purpose and finally is should be used for the data interpretation with help of various diagrams and tables which is being used for the properly defining the data which is collected from the various respondents accordingly.

Q1. What do you think that the amount invested in the insurance policy plan is a good substitute for the future? Option Agree Not agree Cant say Total No 40 5 5
Total no

Percentage 80% 10% 10%

Agree Not agree Cant say

Graphical Representation

32

Interpretation: - In this above mentioned data and as it is also represented by

the pie diagram which will clearly shows the money invested in the insurance sector is a good substitute for the future. And for this following public opinion is represented in the pie diagram and the public opinion are as follows e.g. 80% of the general public think that it is a good substitute and is strongly agree and 10% are of the opinion that they are not agree with this view and other 10% said that they cant say about this accordingly. Q2. Whether you have any insurance policy? Option Yes No Total No 35 15 Percentage 70% 30%

Graphical Representation

Yes

Total No Percentage

33

Interpretation:

- In the above mentioned data and also represent by the pie diagram which clearly shows that the 70% of the people have insurance policy and on the other hand 30% of the people didnt have any insurance policy.

Q3. Which insurance policy do you prefer the most? Option Life insurance General insurance Total No 40 10 Percentage 80 % 20 %

Graphical Representation

Life insurance

Total No Percentage

34

Interpretation: - In the above mentioned data and also represented in the pie
diagram clearly shows that the total number of 40 people would like to invest their money in the life insurance which will cover 80% share and on the other hand only 10 total number of people invest in the general insurance which will cover 20% of the market share.

Q4. In which plan you have invested your money? Option Ulip Term whole life Money back Total No 20 10 5 15 Percentage 40% 20% 10% 30%

Graphical Representation
Total no

Ulip Term whole life Money back

35

Interpretation:

- In the above mentioned data and the pie diagram which clearly shows that the preference of the customers where they want to invest their money and as well as the plans. The ulip plan covered 40%, and term plans covered 20% and whole life plan cover 10% and the money back plan covered 30% market.

Q5. In the present scenario there are various insurance players working? Are you aware? (Rank the alternatives according to your preference) Option Lic ICICI Pru HDFC life insurance Bajaj allinz Max New York Life Total No 20 8 10 7 5 Percentage 40% 16% 20% 14% 10%

Graphical Representation
Total No

Lic ICICI Pru HDFC life insurance Bajaj allinz Max New York Life

36

Interpretation:

- In the above mentioned data and the pie diagram the data clearly shows that in the present scenario there are various private players competing in the insurance sector together with LIC. And in this case the general public rank the player according to their preference e.g. Lic 40% and ICICI Pru 16% and HDFC Life Insurance 20% and Bajaj Allianz 14% Max New York Life 10% accordingly.

37

Q6. From which life insurance Company. You / Your family have a policy? Option Lic HDFC life Icici pru Any other Total no 16 16 10 08 percentage 32% 32% 20% 16%

Graphical Representation

Total no

Lic HDFC life Icici pru Any other

Interpretation:-

In the above mentioned data and also represent by the pie diagram which clearly shows that 32%-32% of the people have LIC and HDFC Life Insurance policy and 20% of the people having ICICI PRU, and 16% of the people having some other insurance policy respectively.

38

Q7. Are you satisfied with the services given by the HDFC Standard life insurance company ? Option Satisfied Highly satisfied Not satisfied Cant say Total no 20 07 10 13 Percentage 40% 14% 20% 26%

Graphical Representation
Total no

Satisfied Highly satisfied Not satisfied Cant say

Interpretation: - In the above mentioned data and also represented by the pie diagram which clearly shows that 40% of the people were satisfied with the services provided by the HDFC Standard Life insurance Company and 14% were highly satisfied and 20% of the people were not satisfied with services given to them and 26% if the people having view of cant say respectively.

39

Q8. From which type of service are you satisfied with? Option Customer care Client handling Payment of premium Any other Total no 10 12 16 12 Percentage 20% 24% 32% 24%

Graphical Representation
Total no

Customer care Client handling Payment of premium Any other

Interpretation: - In the above mentioned data and also represented by the pie
diagram which clearly shows that the 20% of the people were satisfied with the customer care services provided by these players and 24 % were of the views that client handling is best, and 32% of the people were of the views that the payment of the premium is the most satisfied services given by these insurance players and 24% of the people were having views that some other services are most suitable respectively.

40

Q9. If you are not satisfied with the terms and condition of the insurance contract what will you do? Option Revocation of contract Change the plan accordingly Go to the another insurance player Total No 15 30 5 Percentage 30% 60% 10%

Graphical Representation

Total no

Revocation of contract Change the plan accordingly Go to the another insurance player

Interpretation: - In the above mentioned data and as also represent by the pie
diagram the data clearly shows that if the customers are not satisfied with the terms and condition of the insurance contract they take certain steps accordingly e.g. revocation of the contract 15 person are in this favours and the 30 person said they change the plans accordingly and only 5 person who said they go for another insurance player for the same.
41

Q10. Do you feel that HDFC STANDARF LIFE Entry into insurance sector will bring down the cost of purchasing a Life insurance Policy? Option Yes No 50-50 Cant say Total no 25 10 07 08 Percentage 50% 20% 14% 16%

Graphical Representation
Total no

Yes No 50-50 Cant say

Interpretation: - In the above mentioned data and which is also represented by

the pie diagram which clearly shows that HDFC SRANDARD LIFE Entry into insurance sector will bring down the cost of purchasing a Life insurance Policy and 50% of the people were in the favours of this view, and 20% of the people were against this view and 14% of the people having neutral views and 16% of the people were having the view of cant say respectively.

42

Q11. In order to survive in presentation competitive world, do you think that private insurance players should reach to the rural market also? Option Easy and reasonable plans Most beneficial for the agriculturist Group plans for the joint family Nominal premium Total No 10 15 20 5 Percentage 20% 30% 40% 10%

Graphical Representation

Total no

Easy and reasonable plans Most beneficial for the agriculturist Group plans for the joint family Nominal premium

Interpretation: - In the above mentioned data and the pie diagram it is clearly
shows that in the present competitive market the insurance players should have to cover the whole market including rural market also and for this following policies are adopted by these player e.g. easy and reasonable plans which will cover 20%, and most beneficial for the agriculturist covered 30% and for group plans for the joint family which will cover 40% and nominal premium rates cover 10% accordingly.

43

Q12. What are the various steps to be taken for the growth of the insurance sector? Option Large amount of investment needed Awareness among the general public Reasonable policy or plans Total No 15 25 10 Percentage 30% 50% 20%

Graphical Representation

Total no

Large amount of investment needed Awareness among the general public Reasonable policy or plans

Interpretation: - In this above mentioned data and pie diagram which clearly
shows that the various step to be take for the growth of the insurance sector. And for this the following steps are to be taken which is mentioned are as follows e.g. large amount of investment needed cover 30% and the awareness among the general public covered 50% of the customers views and reasonable policy or plans covered 20% public opinion accordingly.
44

CHAPTER V

45

 FINDINGS SUGGESTIONS LIMITATIONS OF THE STUDY CONCLUSION

46

FINDINGS
1. According to data 80 % people were in the favour of the life insurance policies and the remaining 20% were are in the favour of the general insurance policies. 2. Most of the people are of the view that they were investing in the ulip plans and the remaining people were invested in the term plans and the rest of the people are in the favour investing in the whole life plans. 3. Most of the people say that the LIC is better insurance player and remaining of the pubic is in the favour of the ICICI pru and the rest of the general public is in the favour of the HDFC Standard life insurance company accordingly. 4. Most people are of the view that the services provide by these players is better. And 30% of the general public is of the view that the client handling is also better in these days. And 70% of the general public is of the view that payment of premium is one of the best services provided by these players.

5. 30 % customers were of the view that the revocation of the contract is done if the policies or insurance contract is not done properly. And 60% of the customers are of the view that they change their plans accordingly if any problem is arising. And 10% of the customers are of the view that they go to another insurance player if they were not satisfied with the terms and condition of the respective plans. 6. In order to survive in the present competitive world the private insurance player should reach the rural market accordingly. And for this 20% of the people said that the easy and reasonable plans work affective in order to achieve this objective. And 30% of the people were of the view that most beneficial plans for agriculturist is also sounds good. And the 40% were of the view that the group plans for the joint family is also done magic for achieving this targets.

47

Suggestion
Indian insurance industry needs the following to meet the global challenges:1. Understanding the customer better will enable insurance companies to design appropriate products, determine price correctly and increase profitability. 2. Selection of right type of distribution channel mix along with prudent and efficient for [fleet on street] management. 3. An efficient C.R.M system (customer retention management), which would eventually create sustainable competitive advantages and build a long-lasting relationship 4. Insurers must follow best investment practices and must have a strong asset management company to maximize returns. 5. Insurers should increase the customer base in semi urban and rural areas, which offer a huge potential. 6. Promoting health insurance and using e-broking to increase the business.

48

LIMITATIONS
Following were the limitations which I faced during doing this Research: The cost for doing the project was one of the limitations. There was also time constraint, as people were busy in their own work. Limited area is covered for doing this research work. Respondents were giving answer to the questions that were written on the questionnaire, but less efforts were made to get more and more information regarding their own views The respondents were not paying proper attention while filling the questionnaires. Some of the respondents were not aware about the questions, so they were not to present their views.

49

CONCLUSION
Thus, in the last on basis of above the discussion we can conclude that need for private sector entry is justifiable on the basis of enhancing the efficiency of operation, achieving greater density and insurance coverage in the country and for greater mobilization of long-term savings for long gestation infrastructure projects. in the wake of such competition it is essential for the government monopolies (lic and gic) that they quickly up grade their technology, restructure themselves on more efficient lines and operate as broad run enterprise. New players should not be treated as rivalries to government companies, but they can supplement in achieving the objective of growth of insurance business in India.

50

BIBLIOGRAPHY
1. BOOKS:

Research methodology- methods and techniquesBy CR Kothari, New Age International Publishers.

2. WEB ADDRESS:
www.hdfclife.com WWW.INDIANMBA.COM www.enwikipedia.org INSURANCE.HEADLINESINDIA.COM/INDIA-INSURANCE-LAWS.HTML

51

ANNEXURE

52

Questionnaire
I am conducting a study on the topic Life Insurance Sector in India with special reference to Hdfc Standard Life Insurance Company. I assure you that the information provided by you will be kept confidential and will be used only for the research purpose.

General information
NameAgeGender Address. .... Education............Occupation Contact no

Note: - please rank (1, 2, 3) accordingly the box where necessary.

Q1. Do you think that the amount invested in the insurance policy plan is a good substitute for the future? a) Agree ( ) b) Not agree ( ) c) Cant say ( ) Q2. Whether you have invested in any insurance policy? a) Yes ( ) b) no ( ) Q3. Which insurance policies do you prefer the most? a) Life insurance ( ) b) General insurance ( Q4. In which plan you have invested your money? a) Ulip ( ) b) Term c) Whole life plan ( ) d) Money back plan ( ( ) ) )

Q5. In the present scenario there are various life insurance players working? Are you aware? (Rank the alternatives according to your preference) a) Hdfc standard Life Insurance ( ) b) Life Insurance Corporation ( ) c) Max New York Life Insurance ( ) d) ICICI Pru. ( ) e) Bajaj Alianz. ( ) Q6. In which life insurance Company, You / Your family have a policy? a) LIC ( ) b) Hdfc standard Life ( ) c) ICICI Pru ( ) d) Any other 53

Q7. Are you satisfied with the services given by the Hdfc standard life insurance company? a) satisfied ( ) b) highly satisfied ( ) c) Not satisfied ( ) d) cant say ( )

Q8. From Which type of service are you satisfied with? a) Customer care ( ) b) Client handling ( ) c) Payment of premium ( ) d) any other please specify (

Q9. If you are not satisfied with the terms and condition of the insurance contract what do you do? a) Revoke the contract ( ) b) Change the plan accordingly ( ) c) Go to another insurance player. ( ) Q10. Do you feel that with the entry of Hdfc standard Life Insurance company into the insurance sector will bring down the cost of purchasing a Life insurance Policy? a) Yes ( ) b) No ( ) c) Cant Say ( ) Q11. In order to survive in present competitive world, do you think that private insurance players should reach to the rural market also? a) Easy and reasonable planes. ( ) b) Most beneficial plans for agri. ( ) c) Group plans for joint family. ( ) d) Nominal premium charges. ( ) Q12. What are the various steps to be taken for the growth of the insurance sector? a) Large amount of investment. ( ) b) Awareness among the general public. ( ) c) Reasonable policy / plans. ( ) d) If any other ( ) Q13. Do you think that there is any difference between the LIC and HDFC STANDARD LIFE INSURANCE COMPANY? Q14. Any suggestions for the improvement of the performance of the Hdfc standard life insurance? Suggestions______________________________________________

54